However, the Mexican Fintech Law was the first impulse for the sector. Firstly, because it helped more people to have access to financial services and products, it encouraged competition as the sector began to specialize, incorporate new digital tools and innovate in its services.
The fintech decalogue
There is much to thank for the Fintech Law, but for its impact to be greater, it is necessary to dot the i’s and talk about the debts it has for the sector. For me, this decalogue considers some of the key aspects that need to be modified in the law to achieve its objective: to promote the fintech ecosystem for the benefit of its users:
1) Pioneers in Latin America. Despite the fact that the Brazilian Fintech Law is much younger than the Mexican one, the difference between both ecosystems is enormous. It is not for nothing that this country ranks first in Latin America with the largest and most diverse fintech industry.
2) UK influence. The first draft of the Mexican law was based on the UK legislation, which was not perfectly grounded and over time this led to technical problems regarding the implementation of APIs and recurring payments, as well as a onboarding irregular in which some banks implemented up to 10 steps, which is a long and tedious process for the end user.
3) Analyze the context. The laws, not only in financial matters, have to be modified to correspond to the context. Brazil, which also copied the UK model, has had to improve its regulations and these changes are what have allowed it to capitalize on opportunities and boost its industry. In Mexico we started well, but after five years there are many pending and adjustments required by law.
4) Consider use cases. The law in Mexico would have to start by considering use cases for technological innovations. For example, in terms of APIS, those for recurring payments are not the same as those for service payments.
5) Data, payments and services. Mexican law only contemplates the use of data; In contrast, legislation such as that of Colombia adds payments and financial services to have more robust regulations and clearer rules for companies.
